EUR/GBP Forecast October 2, 2017, Technical Analysis

The EUR/GBP pair exploded to the upside during the day on Friday, reaching towards the 0.8850 level. I think that the market is going to be bullish from here though, and the pullback should be buying opportunities. When you look at the weekly candle, it is forming a hammer and this is right where you needed to see it, just above the 0.88 handle. With that being the case, I believe that the longer-term uptrend is going to continue, and that this could be a nice opportunity for those looking to buy and hold. I suspect that we will go to the 0.93 level over the longer-term, but in the meantime pullbacks could happen. By adding to the position in small increments, you can take advantage of dips and therefore take advantage of the longer-term move. I believe that the pair is offering a nice opportunity going forward, and I also believe that we will break above the 0.93 level given enough time, due to the divorce between the two economies. After all, people are much more confident with the European Union then they are the United Kingdom.
I don’t have any interest in selling, at least not until we would break down below the 0.8650 level, something that is based upon longer term charts. I don’t see that happening anytime soon, so I believe we continue to see buyers jump into this market, and be relentless going forward. Remember, the PIP value in this pair is almost double that it is in other markets, so there’s no need to be overly concerned about it moving quick or slow, the profits do, after time. Given enough time, I do think that we go much higher as the uptrend has been so strong and relentless, even in the face of a significant selloff lately.

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